Deccan Cements Ltd (DECCANCE) AI Stock Analysis

• Market Cap: ₹8.81B
• Dividend Yield: 0.08%
• Average Volume (3M): 2.80K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.03
• Revenue Growth: -28.32%
• EPS Growth: 93.44%
• Country: IN
• Employees: 396
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 6.47
• Shares Outstanding: 14,007,500
• 10 Day Avg. Volume: 5,033
• 30 Day Avg. Volume: 2,799
• PEG Ratio: -1.86
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 2.12
• P/FCF Ratio: -3.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹623.00 ▼(-14.66% Downside)

Deccan Cements Ltd faces significant financial and technical challenges. The company's financial performance is under pressure with declining revenue and profitability, increased financial leverage, and negative cash flows. Technical indicators are bearish, with the stock being oversold and trading below key moving averages. Additionally, the high P/E ratio suggests overvaluation, while the low dividend yield offers limited income potential. These factors collectively contribute to a lower overall stock score.

Positive Factors

Strong equity base

The balance sheet notes equity remains strong despite higher leverage, providing a capital cushion to absorb cyclical downturns and support operations. A solid equity base enhances solvency and preserves strategic flexibility for refinancing or restructuring over the medium term.

Stable EBITDA margins

Reported relative stability in EBITDA margins indicates the core cement operations can still generate operating cash before capex and financing. Sustained EBITDA resilience supports debt servicing capacity and provides a platform for recovery if volumes or pricing normalize over the coming months.

Exposure to construction and infrastructure demand

Deccan's business model focuses on manufacturing and distributing cement to construction and infrastructure customers, creating recurring demand dynamics. A dedicated distribution network and concentration in foundational building materials support long-term volume potential when sector activity recovers.

Negative Factors

Declining revenue

Revenue fell sharply year-over-year, signaling significant demand loss or market-share erosion. Persistent top-line contraction undermines scale economics, pressures margins and profitability, and makes operational recovery dependent on restoring volumes or improving realized prices over the medium term.

Weak cash generation

The cash flow summary highlights negative free cash flow and worsening operating cash conversion in 2025. Weak cash generation constrains the company's ability to fund necessary capex, service debt or invest in distribution, increasing reliance on external funding and elevating liquidity risk.

Rising financial leverage

An increased debt-to-equity ratio indicates heavier reliance on debt financing, raising interest burden and financial risk. Elevated leverage reduces strategic flexibility, limits capital allocation options, and magnifies downside exposure if earnings and cash flows fail to stabilize in the medium term.

Deccan Cements Ltd Business Overview & Revenue Model

Company Description

Deccan Cements Limited manufactures and sells cement in India. The company offers ordinary Portland, Portland pozzolana, and Portland slag cement products; and other specialty cement products, such as rapid hardening, sulphate resistant, high alumina, and oil well cement, as well as 53-S grade ordinary Portland cement, a specialty cement for railway applications. It also generates and sells electricity through thermal, wind, and hydro-electric power units. The company was incorporated in 1979 and is headquartered in Hyderabad, India.

How the Company Makes Money

Deccan Cements Ltd generates revenue primarily through the sale of its cement products, which include Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), and other specialty cements. The company benefits from a robust distribution network that ensures its products reach a wide customer base across various regions. Key revenue streams include direct sales to construction companies, government contracts, and retail sales through dealers and distributors. Additionally, DECCANCE may engage in strategic partnerships with construction firms and participate in large-scale infrastructure projects, further enhancing its market presence and revenue potential. Factors contributing to its earnings include the overall growth of the construction sector, effective cost management, and the ability to adapt to changing market demands.

Deccan Cements Ltd Financial Statement Overview

Summary

Deccan Cements Ltd faces substantial challenges across its financial statements. Revenue and profitability have faced pressure, impacting income statement performance. The balance sheet reflects increased financial leverage, though equity remains strong. Cash flow difficulties, particularly negative free cash flows, may constrain future operations and growth opportunities. The company needs to address operational efficiencies, manage costs, and strategically reduce debt to improve financial health.

Income Statement

The company has exhibited fluctuating revenue over recent years, with a significant decline in revenue from 2024 to 2025. Gross profit margins have decreased, indicating pressure on cost management or pricing power. Net profit margin has also deteriorated sharply in 2025, reflecting profitability challenges. While EBITDA margin has been relatively stable, the decline in EBIT margin suggests increased operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating a higher reliance on debt financing and potential risk in financial leverage. However, the equity ratio remains strong, suggesting a solid equity base. A declining return on equity reflects reduced profitability, impacting investors' returns.

Cash Flow

The cash flow position shows significant challenges, with negative free cash flow in recent years and a declining trend. The company struggles to generate sufficient operating cash flow to cover capital expenditures, potentially affecting future growth investments. The operating cash flow to net income ratio has turned unfavorable in 2025, highlighting inefficiencies in converting net income into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.05B	5.27B	7.99B	7.82B	7.90B	7.58B
Gross Profit	3.33B	2.61B	2.57B	4.33B	4.06B	4.72B
EBITDA	679.75M	515.70M	920.47M	1.07B	1.52B	1.85B
Net Income	200.61M	75.19M	372.63M	492.95M	875.74M	1.15B
Balance Sheet
Total Assets	0.00	16.25B	14.46B	11.55B	9.85B	8.61B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.44B	2.30B	2.12B	2.97B	2.59B
Total Debt	0.00	7.14B	5.20B	2.65B	1.66B	961.64M
Total Liabilities	-7.22B	9.03B	7.27B	4.68B	3.39B	2.97B
Stockholders Equity	7.22B	7.22B	7.19B	6.87B	6.46B	5.65B
Cash Flow
Free Cash Flow	0.00	-3.16B	-2.34B	-1.80B	370.50M	910.16M
Operating Cash Flow	0.00	-376.42M	566.99M	549.54M	792.73M	1.84B
Investing Cash Flow	0.00	-2.27B	-2.77B	-2.19B	-917.43M	-320.99M
Financing Cash Flow	0.00	1.78B	2.38B	796.52M	452.58M	-86.06M

Deccan Cements Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 730.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DECCANCE, the sentiment is Negative. The current price of 730.05 is above the 20-day moving average (MA) of 671.46, above the 50-day MA of 724.78, and below the 200-day MA of 885.90, indicating a bearish trend. The MACD of -33.37 indicates Positive momentum. The RSI at 26.54 is Positive, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DECCANCE.

Deccan Cements Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
UDAICEMENT	54 Neutral	₹20.29B	134.74	―	―	26.55%	-77.02%
SAURASHCEM	53 Neutral	₹7.95B	23.11	―	2.39%	2.37%	55.27%
SHREDIGCEM	50 Neutral	₹10.83B	28.84	―	1.66%	3.09%	-50.15%
NCLIND	49 Neutral	₹8.29B	16.55	―	1.52%	-16.46%	-21.60%
DECCANCE	48 Neutral	₹8.81B	26.56	―	0.08%	-28.32%	93.44%
SANGHIIND	44 Neutral	₹15.62B	-3.67	―	―	32.54%	19.65%

Deccan Cements Ltd Corporate Events

Deccan Cements Files SEBI Regulation 74(5) Compliance Certificate for December Quarter

Deccan Cements Limited has notified the stock exchanges that it has obtained the required quarterly certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 from its registrar and transfer agent, KFin Technologies Limited, for the quarter ended 31 December 2025. The certification confirms that all details of securities dematerialized or rematerialized during the period have been duly furnished to all stock exchanges where the company’s shares are listed, underscoring ongoing compliance with depository-related regulatory requirements and supporting transparency for investors and other market participants.

Deccan Cements Closes Trading Window Ahead of Q3 FY26 Results

Deccan Cements Ltd has announced the closure of its trading window for directors, designated employees, and their immediate relatives in line with SEBI’s Prohibition of Insider Trading Regulations, 2015, which mandate a blackout period around the disclosure of financial results. The company stated that the trading window will be closed from 1 January 2026 until 14 February 2026, extending to 48 hours after the tentative date of declaration of financial results for the quarter ended 31 December 2025, reinforcing its compliance framework and controls over potential insider trading ahead of earnings disclosure.